Additional defendants involved with student loan debt relief schemes have been permanently banned from selling debt relief services pursuant to settlements with the federal trade commission. The FTC alleged that they tricked consumers into paying illegal upfront fees in hopes of reducing or.
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Nothing earth shattering in terms of law (which is kind of a relief) but there are some interesting issues worth discussing. A frequent topic of discussion here is the often blurry line between what.
FTC: Student Debt Relief Scheme Boss Agrees to $11 Million Settlement. By Allie Bidwell, NASFAA Senior Reporter. The leader of a California-based student loan debt relief scam last week agreed to an $11 million settlement with the Federal Trade Commission (FTC), admitting that he swindled borrowers out of hundreds of dollars under the guise of lowering their monthly payments or securing them.
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The FTC has filed a lawsuit in a California federal district court against three interrelated student loan debt relief companies and the individual who is their majority owner for alleged violations of Section 5 of the FTC Act and the Telemarketing Sales Rule (TSR). The TSR implements the Telemarketing and Consumer Fraud and Abuse Act.
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Three student debt relief companies were banned from the industry for falsely promising they could eliminate student loan debt and for posing as consumers. Defendants in Student Loan Debt Relief Scheme Banned from Industry in Settlement with FTC and Florida
The FTC also alleged that the defendants charged consumers illegal upfront fees of $300 or more for these purported debt relief services. At the request of the FTC, a federal court temporarily halted the scheme and froze its assets .
The FTC had sought $. helped anyone in obtaining a loan," the release said. The defendants are also banned from marketing or providing any credit-related products or services, such as loans,
WASHINGTON, May 25, 2016 /PRNewswire-USNewswire/ — The Federal Trade Commission and the State of Florida have taken action against two operations charged with running phony student loan debt.
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